As noted earlier, strategic use of social media marketing, careful cost control, and a fantastic product should enable Gelato Mobile to be a successful small business opportunity. The marketing and promotion methods presented are new and innovative, and should successfully engage Saskatoon residents in the purchasing process.
Financially speaking, Gelato Mobile is projected to be profitable, and could consider incorporating for tax and liability considerations. As with many businesses, the critical variable for Gelato Mobile is sales. As noted in the sensitivity analysis, a 25% swing in customers in the wrong direction would ultimately cause the business to have negative net income. In a worst case scenario, the high school student position can be eliminated, and an owner can step in if necessary, as each of the owners have the flexibility to do this.
Overall, a new market can be created, providing value for the owners from this unique combination of gelato and social media, fully engaging Saskatoon’s online-savvy residents and their taste buds.
Appendix A: Supplier Letters of Agreement
Gelato Mobile
3152 Cairns Avenue
Saskatoon, SK S7L 4R5
April 1, 2009
Re: Gelato & Cone Supplier Letter of Agreement
To the Owners of Gelato Mobile:
This letter confirms the agreement between Jerry’s Artisan Ice Creams and Gelato Mobile. Jerry’s will supply the following:
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Gelato at a wholesale cost of $8825 per 11.4 L pail of gelato (apprx. 192 pails in total needed May-September)
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Cones (regular and waffle) at a wholesale cost of $0.20 each (apprx. 10,640 cones in total needed May-September)
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Cups at a wholesale cost of $0.25 each (apprx. 10,640 cups in total needed May-September)
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Spoons at a wholesale cost of $0.05 each (apprx. 10,640 spoons in total needed May-September)
This agreement will be in effect from April 14, 2009 through October 14, 2013. Gelato Mobile will receive the exclusive mobile distribution rights for Jerry’s gelato during this agreement. Gelato Mobile will receive gelato supply of 12 different flavours and 528 each of cones, spoons and cups prior to May 1, 2009, with consistent weekly supply, or as based on demand, provided by Gelato Mobile Management. Gelato Mobile will pick up supply from Jerry’s location and will pay for each supply by cash or cheque. In exchange, Gelato Mobile will advertise that it sells ‘Jerry’s Gelato’ on its mobile unit signage, on its Facebook page and any other promotion/social media outset. As well, Gelato Mobile will not park and operate (sell its gelato products) within 1km of Jerry’s Emporium at 1115 Grosvenor Avenue in Saskatoon. A contract will be drafted and signed prior to the start of this agreement.
Morgan Woodsen
Morgan Woodsen, Food Service Manager, Jerry’s Artisan
Gelato Mobile
3152 Cairns Avenue
Saskatoon, SK S7L 4R5
April 1, 2009
Re: Ice Cream Truck Rental
To the Management of Gelato Mobile:
This letter confirms the agreement between Mr. Cool Ice Cream Truck Rental and Gelato Mobile. This agreement will be in effect from April 14, 2009 through October 14, 2013. Gelato Mobile will rent a 1990 GMC Ice Cream Truck (VIN# KZS1468JHW98) from Mr Cool for $650 per month, payable with 5 post-dated cheques, for the months of May through September. The Ice Cream Truck comes totally outfitted with the following:
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Cold plates for 12 x 11.4L pails of ice cream/gelato
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These cold plates do not require power throughout the day. Just plug the truck in at night and the plates will remain a consistent, cool temperature for 24 hours.
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2 front row seats for driver and passenger (passenger seat revolves to face back of truck)
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GPS System (Tom Tom system, with subscription covered by Mr Cool)
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Storage, cash till, debit machine
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All other regular ice cream truck features (to be further described in the contract)
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Back up battery for lighting at night
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Customized signage for one season
In exchange, Gelato Mobile will advertise the truck as a Mr Cool Ice Cream Truck on the back of the truck. For a fee of $500, Mr Cool will create and place Gelato Mobile signage to the vehicle (Gelato Mobile to forward creative). Gelato Mobile is responsible for insurance and registration of the vehicle from May 1 through September 30 each year. Mr Cool will deliver the vehicle to Saskatoon prior to May 1 and pick the vehicle up in Saskatoon after September 30. A contract will be drafted and signed prior to the start of this agreement.
Andrew Corrigan
Andrew Corrigan, CEO, Mr Cool Ice Cream Truck Rentals, 814 Albert Street N, Regina, SK S4V 0G7
Appendix B: Facebook and Twitter Screen Shots
Below are screen shots of Facebook and Twitter social media channels, showcasing the following examples of how Gelato Mobile will be promoted:
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Event notification which shows up on a Friend’s profile under Highlights, along with Friends who are attending this event. Clicking on this link redirects someone to the Event Page, which provides more information and the option to attend.
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Facebook Event Page providing more information, along with everyone who’s attending, and option to attend, which builds community amongst these Facebook Fans / Attendees
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Actual Facebook Page, promoting Gelato Mobile, what it’s about, who’s a Fan, the option to become a Fan, again building community and a social group centered around Gelato Mobile. This page would also provide daily updates (top of page) about where Gelato Mobile will be that day, or special offers, along with photos of Gelato Mobile and comments by Gelato Mobile fans: creating a social community where two way communication and engagement occurs between Gelato Mobile and its Facebook Fans.
Twitter Page, showing the current “Tweet” (Free gelato for first 2 people who find the Gelato Mobile), the number of followers Gelato Mobile has (number of people who will instantly receive Gelato Mobile’s “Tweets” about location, promotion, events, etc), and the number of people Gelato Mobile is following: creating an online social community where two way communication and engagement occurs between Gelato Mobile and its Twitter followers.
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